Sector movers: Cyclicals, oil service stocks top leaderboard
Cyclicals outperformed defensive issues again as equity strategists had been predicting in the wake of the French election results and in anticipation of the White House's tax cut plans.
Oil equipment and service stocks were at the top of the leaderboard on the back of a positive endorsement out of Canaccord Genuity on Amec FW/Wood Group's shares.
The Canadian broker said the soon-to-merge companies were its favoured play in the oilfield services space.
Shares in that segment of the market also got a bit of a boost towards the close of trading as the latest US Department of Energy crude oil inventory data revealed a larger than expected 3.6m barrel drop in American oil stockpiles.
With the consensus having pegged the fall in weekly oil inventories at just 1.7m barrels that initially sent crude oil futures higher.
Right behind were Chemicals, with Croda at the head of the advance after the high-performance ingredients and technology speciality chemicals manufacturer said first quarter sales jumped 4.9%, continuing the improving trend seen over the prior three months, boosted by strng organic growth.
Tesco accounted for strength among Food and Drug retailers following news from the previous day that two of its non-executive directors had bought into the grocer's shares.
Heading the other way were the more defensive sectors of the market, with GSK acting as a drag on pharma shares.
The drug giant posted a 19% year-on-year increase in its first quarter revenues to reach £7.4bn or 5% when currency effects are excluded.
Utilities were also lower with Severn Trent the worst performer on the heels of a downgrade out of HSBC from 'Hold' to 'Reduce' in anticipation of a new push from the regulator for the sector to increase its 'resilience', which in the case of Coventry-based Severn meant roughly £230.0m of additional capital outlays, according to the investment bank.
Top performing sectors so far today
Oil Equipment, Services & Distribution 16,420.85 +1.89%
Industrial Metals & Mining 2,290.64 +1.31%
Chemicals 13,008.13 +1.23%
Aerospace and Defence 5,146.18 +1.22%
Food & Drug Retailers 2,950.62 +1.12%
Bottom performing sectors so far today
Automobiles & Parts 8,407.68 -1.78%
Fixed Line Telecommunications 3,586.81 -0.99%
Pharmaceuticals & Biotechnology 13,717.58 -0.85%
Gas, Water & Multiutilities 6,151.77 -0.42%
Electricity 8,221.78 -0.18%